FXAIX | Fidelity 500 Index Fund Overview | MarketWatch (2024)

FAQs

FXAIX | Fidelity 500 Index Fund Overview | MarketWatch? ›

Fidelity Investment's flagship FXAIX fund remains one of the most popular S&P 500 index funds among U.S. investors, and for good reason. With a 0.015% expense ratio, or just $1.50 in fees for a $10,000 investment, this fund offers extraordinary value.

Fidelity Investment's flagship FXAIX fund remains one of the most popular S&P 500 index funds among U.S. investors, and for good reason. With a 0.015% expense ratio, or just $1.50 in fees for a $10,000 investment, this fund offers extraordinary value.

Fidelity® 500 Index Fund is a diversified domestic large-cap equity strategy that seeks to closely track the returns and characteristics of the S&P 500® index. The S&P 500® is a market-capitalization-weighted index designed to measure the performance of 500 large-cap U.S. companies.

Originally launched in 1988, FXAIX is an S&P 500 index fund that currently manages around $380 billion in assets, a significantly higher amount than similar competitors. The fund stands out for its low operating costs, carrying one of the lowest expense ratios at 0.015%. Plus, it has no minimum investment requirements.

FXAIX has a 5-year annualized total return of 9.41% and is in the top third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 7.65%, which places it in the top third during this time-frame.

The current dividend payout for stock Fidelity 500 Index Fund (FXAIX) as of June 11, 2023 is 2.15 USD. The forward dividend yield for FXAIX as of June 11, 2023 is 1.45%. Average dividend growth rate for stock Fidelity 500 Index Fund (FXAIX) for past three years is 2.52%.

Fidelity 500 Index Fund (FXAIX)

If your 401(k) plan offers it, FXAIX might be a great alternative to VINIX due to its lower cost. The fund charges a rock-bottom expense ratio of just 0.015%, compared with VINIX at 0.035%.

Which is better Vanguard or Fidelity? ›

In fact, Fidelity is our overall pick for the best online broker in 2022, so it is very hard to beat. All that said, Vanguard still offers some of the lowest-cost funds in the industry and will appeal to buy-and-hold investors, retirement savers, and investors who want access to professional advice.

FXAIX is one of the best options for a novice investor as this fund has not had any major downsides over time. FXAIX is 100% invested in the S&P 500 index, and its performance may reflect the index indices.

It invests in growth and value stocks of large-cap companies. The fund seeks to track the performance of the S&P 500 Index.

Category: Large Blend as of May 31, 2023 | Rankings are out of 1,281 investments.

For each of these trade orders placed through a broker, a $25 service charge applies. Funds are also subject to management fees and expenses.

How the 4% Rule Works. The 4% rule is easy to follow. In the first year of retirement, you can withdraw up to 4% of your portfolio's value. If you have $1 million saved for retirement, for example, you could spend $40,000 in the first year of retirement following the 4% rule.

Index funds aim to replicate the performance of the index they track instead of trying to outperform the market through individual stock selection. Low costs, diversification and transparency make index funds an attractive investment option for beginners.

How long should you invest in index funds? ›

Staying invested, especially for a prolonged period, is important if you want to earn returns in sync with the market while escaping short-term volatility. Ensure that you stay invested in index funds for at least a decade.

Fidelity's S&P 500 index fund is the least expensive offering on our list, charging a miniscule annual expense ratio of 0.015%.

Basic Info. S&P 500 5 Year Return is at 54.51%, compared to 57.45% last month and 71.33% last year. This is higher than the long term average of 44.37%. The S&P 500 5 Year Return is the investment return received for a 5 year period, excluding dividends, when holding the S&P 500 index.

S&P 500 12 Month Total Return is at 1.15%, compared to 2.66% last month and -0.30% last year.

Basic Info. S&P 500 Monthly Return is at 0.25%, compared to 1.46% last month and 0.01% last year. This is lower than the long term average of 0.50%. The S&P 500 Monthly Return is the investment return received each month, excluding dividends, when holding the S&P 500 index.

FXAIX - Fidelity 500 Index Fund has disclosed 507 total holdings in their latest SEC filings.

FXAIX is a mutual fund. Because index-tracking funds will follow the performance of the index, one of, if not the, biggest determinant of long-term returns is how much it charges in fees.

Cons Explained

No access to futures, commodities, or crypto trading: Fidelity does not support trading in futures, options on futures, commodities, currencies, or cryptocurrencies, even though you can exchange currencies on the platform.

What is Fidelity's safest fund? The safest Fidelity funds are those in the lowest-risk categories. While it's not possible to determine which specific fund has the absolute lowest risk, the categories with the lowest Morningstar risk ratings are cash reserve and money market funds.

Is it a good time to buy S&P 500? ›

We do not think now is a good time to invest heavily in the S&P 500 if you have a short- to medium-term horizon. We underweight equities in our broader Asset Allocation framework because inflation is still high, and we do not think the Federal Reserve has finished hiking despite market expectations of cuts in 2023.

Schwab and Fidelity offer similar customer experiences. As a result, most types of investors can find benefits to working with either. The choice between the two may prove a matter of preferred trading instruments: Schwab is better equipped for futures (and international) trading, and only Fidelity offers forex.

How Fidelity makes money. Fidelity makes money from interest on cash held in custody for clients, stock loans to short-sellers, and portfolio margining.

Fidelity 500 Index Fund (FXAIX) | Fidelity Institutional.

An index fund will be subject to the same general risks as the securities in the index it tracks. The fund may also be subject to certain other risks, such as: Lack of Flexibility. An index fund may have less flexibility than a non-index fund to react to price declines in the securities in the index.

Yes, Fidelity Bank is insured by the FDIC, which insures up to $250,000 per depositor for every FDIC-insured bank. Since the FDIC began operations in 1933, no depositor has ever lost a penny of FDIC-insured deposits. An FDIC-insured account is the safest place for consumers to keep their money.

In terms of fees, FXAIX is a no load fund. It has an expense ratio of 0.02% compared to the category average of 0.92%.

With no account fees and no minimums to open a retail brokerage account, including IRAs. Get detailed pricing and learn more about how we compare to others on service, security, and more . account.

Fidelity withdrawal fee. Unlike some online brokers we have reviewed Fidelity does not charge a withdrawal fee. This means that you'll see the same amount of money on your bank account that you transferred from your brokerage account.

Is investing in FXAIX a good investment? ›

The fund helps provide you with investment opportunities and long-term, consistent recovery goals. If you're investing in the stock market, this fund is a great place to start because it has low volatility and is well diversified across multiple sectors of the economy.

It invests in common stocks included in the S&P 500 Index, a widely recognized, unmanaged index of common stock prices, and broadly represents the performance of common stocks.

Fidelity 500 Index Fund (FXAIX)

If your 401(k) plan offers it, FXAIX might be a great alternative to VINIX due to its lower cost. The fund charges a rock-bottom expense ratio of just 0.015%, compared with VINIX at 0.035%. For a $10,000 investment, this works out to $1.50 in annual fees versus $3.50.

For each of these trade orders placed through a broker, a $25 service charge applies. Funds are also subject to management fees and expenses.

You can invest $500 in the S&P 500 by buying shares of a mutual fund or exchange-traded fund that tracks the index.

We do not think now is a good time to invest heavily in the S&P 500 if you have a short- to medium-term horizon. We underweight equities in our broader Asset Allocation framework because inflation is still high, and we do not think the Federal Reserve has finished hiking despite market expectations of cuts in 2023.

Experts agree that for most personal investors, a portfolio comprising 5 to 10 ETFs is perfect in terms of diversification. But the number of ETFs is not what you should be looking at. Rather, you should consider the number of different sources of risk you are getting with those ETFs.

About FXAIX

The Fidelity 500 Index Fund tracks the S&P 500 index, one of the main benchmarks for U.S. stocks.

FXAIX - Fidelity ® 500 Index Fund.

What kind of fund is FXAIX? ›

FXAIX is a mutual fund. Because index-tracking funds will follow the performance of the index, one of, if not the, biggest determinant of long-term returns is how much it charges in fees.